Infosys Limited Q4 Result 2024

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Annual Performance

  • Revenue: Infosys reported annual revenues of $18.6 billion for the fiscal year 2024, marking a 1.4% growth in constant currency terms compared to the previous year.
  • Operating Margin: The operating margin stood at 20.7%.
  • Free Cash Flow (FCF): Demonstrated strong performance with $2,882 million, a 13.7% increase from FY23.
  • Large Deals: Recorded the highest ever Total Contract Value (TCV) of large deals at $17.7 billion, with 52% new contracts.
  • Earnings Per Share (EPS): Basic EPS was ₹63.39, reflecting a 10.0% year-on-year increase.
  • Revenue in Local Currency: Reported at ₹153,670 crore, showing a growth of 4.7% year on year.

Quarterly Performance for Q4 FY24

  • Revenue: Q4 revenues amounted to $4,564 million, which was flat year-on-year and saw a 2.2% sequential decrease in constant currency.
  • Operating Margin: Margin for the quarter was 20.1%, down by 40 basis points sequentially.
  • Free Cash Flow (FCF): Robust at $848 million for the quarter.
  • Large Deals: TCV for the quarter stood at $4.5 billion, with 44% new deals.
  • Revenue in Local Currency: ₹37,923 crore, up 1.3% year on year.
  • Earnings Per Share (EPS): Basic EPS increased significantly by 30.2% year-on-year to ₹19.25.

Capital Allocation for FY24

Dividends: The Board recommended a final dividend of ₹20 per share and a special dividend of ₹8 per share. The total payout ratio over FY20 to FY24 was 85% of Free Cash Flow.

Explore: Infosys Share Price

Future Outlook

  • Revenue Growth: Guidance for FY25 is set between 1%-3% growth in constant currency.
  • Operating Margin: Projected to be between 20%-22%.
  • Dividend Policy: The company plans to continue returning approximately 85% of its free cash flow through semi-annual dividends and/or share buybacks or special dividends, aligning with its capital allocation policy for FY25 to FY29.

Strategic Statements from CEO, Salil Parekh

  • Client Trust and Value Creation: "We delivered the highest ever large deal value in FY24, reflecting strong client trust."
  • Employee Contribution: Salil Parekh thanked Infosys’s 317,000 employees for their efforts in creating client value.
  • Technological Developments: Infosys is expanding capabilities in Generative AI, impacting software engineering, process optimization, and customer support areas.

Infosys Limited and Subsidiaries

Extracted from the Condensed Consolidated Balance Sheet as of:

(Unit: ₹ Crore)

As of March 31, 2024 and 2023

Description

March 31, 2024

March 31, 2023

ASSETS

Current assets:

Cash and cash equivalents

14,786

12,173

Current investments

12,915

6,909

Trade receivables

30,193

25,424

Unbilled revenue

12,768

15,289

Other current assets

18,770

11,086

Total current assets

89,432

70,881

Non-current assets:

Property, plant & equipment and right-of-use assets

19,370

20,675

Goodwill and other intangible assets

8,700

8,997

Non-current investments

11,708

12,569

Non-current unbilled revenue

1,780

1,449

Other non-current assets

6,824

11,245

Total non-current assets

48,382

54,935

Total assets

137,814

125,816

LIABILITIES AND EQUITY

Current liabilities:

Trade payables

3,956

3,865

Unearned revenue

7,341

7,163

Employee benefit obligations

2,622

2,399

Other current liabilities and provisions

24,875

25,759

Total current liabilities

38,794

39,186

Non-current liabilities:

Lease liabilities

6,400

7,057

Other non-current liabilities

4,159

3,778

Total non-current liabilities

10,559

10,835

Total liabilities

49,353

50,021

Equity:

Equity attributable to equity holders of the company

88,116

75,407

Non-controlling interests

345

388

Total equity

88,461

75,795

Total liabilities and equity

137,814

125,816

Extracted from the Condensed Consolidated Statement of Comprehensive Income:

Read More: Quarterly Result

(Unit: ₹ Crore except per equity share data)

Period Ending

March 31, 2024

March 31, 2023

Year Ended March 31, 2024

Year Ended March 31, 2023

Revenues

37,923

37,441

153,670

146,767

Cost of sales

26,748

26,011

107,413

102,353

Gross profit

11,175

11,430

46,257

44,414

Operating expenses:

Selling and marketing expenses

1,735

1,659

6,973

6,249

Administrative expenses

1,819

1,894

7,537

7,260

Total operating expenses

3,554

3,553

14,510

13,509

Operating profit

7,621

7,877

31,747

30,905

Other income, net

2,619

589

4,241

2,417

Profit before income taxes

10,240

8,466

35,988

33,322

Income tax expense

2,265

2,332

9,740

9,214

Net profit (before minority interest)

7,975

6,134

26,248

24,108

Net profit (after minority interest)

7,969

6,128

26,233

24,095

About the Company

 

Infosys Limited is a global leader in next-generation digital services and consulting. Founded in 1981 by N. R. Narayana Murthy and six other engineers in Pune, India, Infosys have grown to become one of the most prominent IT companies worldwide. The company is headquartered in Bangalore, India, and serves clients across various industries by helping them navigate their digital transformation journeys.

Infosys offers a wide range of services and solutions in areas such as IT consulting, technology and engineering services, and outsourcing. The company specialises in software development, maintenance, independent validation services to companies in finance, insurance, manufacturing, and other domains. Additionally, Infosys has made significant strides in emerging technologies like artificial intelligence, blockchain, cloud computing, and big data analytics.

At the heart of Infosys's success is its commitment to innovation. The company operates numerous innovation centres and digital studios around the globe. These centres focus on developing cutting-edge solutions that leverage next-generation technologies to solve complex business challenges. Infosys's AI-powered core, which harnesses automation, analytics, and machine learning, is pivotal in delivering enhanced efficiency and effectiveness in its offerings. Infosys is also known for its strong emphasis on sustainability and social responsibility. The company endeavours to make a positive impact on the communities where it operates through various initiatives focused on education, healthcare, and environment. Infosys's commitment to environmental sustainability is evident in its pledge to become carbon neutral, focusing on energy efficiency, renewable energy, and green building practices.

Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.

This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.

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